starting out.. again

4 Replies

Hello everybody.. my name is Mark and although I've been a member on Bigger Pockets, this is the first time posting something. I started my real estate business back in 2014 and had minimum traction. I had some personal problems that forced me to shut it down and file for bankruptcy (chapter13) at the end of 2015. I'm still interested in real estate and want to start over again, but this time, i'm do things a  little different. I've been to a really good meetup in Ann Arbor Mi. and I was there when a gentleman said he filed bankruptcy and was doing well in real estate. I know its possible, but not sure when to start again. should I wait until I'm discharged from bankruptcy in March 2021 or start now? I've been studying real estate in books, podcast and of course, Bigger Pockets. I would like any advice that my help and thank you for your help.

Do you have cash? I could be wrong but I doubt a bank or hard money lender is going to give you a loan while you are in bankruptcy. As far as private money goes, I think most people would be leary of working with you.

I do have just over 20k in my 401k. I have no cash on hand. I’m not sure if I can use that money or not. I believe that money is locked down till I’m finished with bankruptcy. I’m thinking maybe doing something with no cash like a wholesale deal. But wholesale deals are not a good market here. 

Originally posted by @Mark Bolger :

I do have just over 20k in my 401k. I have no cash on hand. I’m not sure if I can use that money or not. I believe that money is locked down till I’m finished with bankruptcy. I’m thinking maybe doing something with no cash like a wholesale deal. But wholesale deals are not a good market here. 

 You can use your funds from a 401k to do a real estate deal without any fees involved as long as you put the money back within a certain time frame.  I work with a hard money lender already, so maybe we can partner on a deal to help you get started.  

Thanks Paula, I would be interested in partnering up with someone. I know I could use that money, but I will have to check with my lawyer to see if I can use it now or if I have to wait till I’m done with bankruptcy. When I talked to him before about starting up, he asked about the money part. I didn’t think about my 401k

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